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Location choice and optimal zoning under Cournot competition

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  • Chen, Chin-Sheng
  • Lai, Fu-Chuan

Abstract

This paper introduces a symmetric zoning regulation into a spatial Cournot competition model and analyzes how this intervention affects equilibrium locations and social welfare. It is shown that firms will locate separately at the two endpoints of a wide enough zoning enacted in the middle area of a linear market. This location pattern implies that social welfare can be improved by implementing a proper zoning regulation.

Suggested Citation

  • Chen, Chin-Sheng & Lai, Fu-Chuan, 2008. "Location choice and optimal zoning under Cournot competition," Regional Science and Urban Economics, Elsevier, vol. 38(2), pages 119-126, March.
    • Handle: RePEc:eee:regeco:v:38:y:2008:i:2:p:119-126
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    References listed on IDEAS

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